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Disposals and scrapping
12 Months Ended
Jun. 30, 2019
Disposals and scrapping  
Disposals and scrapping

 

10Disposals and scrapping

 

 

 

 

 

 

2019

 

2018

 

2017

 

for the year ended 30 June

 

Note

 

Rm

 

Rm

 

Rm

 

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment

 

17

 

708

 

591

 

836

 

cost

 

 

 

7 245

 

6 297

 

7 037

 

accumulated depreciation and impairment

 

 

 

(6 537

)

(5 706

)

(6 201

)

Assets under construction

 

18

 

852

 

1 200

 

105

 

Goodwill and other intangible assets

 

 

 

112

 

147

 

103

 

cost

 

 

 

336

 

319

 

173

 

accumulated amortisation and impairment

 

 

 

(224

)

(172

)

(70

)

Equity accounted investments

 

 

 

 

1 525

 

 

Long-term receivables and prepaid expenses

 

 

 

 

 

7

 

Assets in disposal groups held for sale

 

 

 

94

 

215

 

 

Trade and other receivables

 

 

 

 

339

 

7

 

Cash and cash equivalents

 

 

 

 

36

 

 

Liabilities in disposal groups held for sale

 

 

 

(38

)

 

 

Short-term provisions

 

 

 

 

(24

)

 

Tax payable

 

 

 

 

(35

)

 

Trade and other payables

 

 

 

 

(208

)

(30

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 728

 

3 786

 

1 028

 

Non-controlling interest

 

 

 

 

(51

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 728

 

3 735

 

1 028

 

Total consideration

 

 

 

567

 

2 425

 

788

 

consideration received

 

 

 

567

 

2 316

 

788

 

long-term supply agreement

 

 

 

 

109

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1 161

)

(1 310

)

(240

)

Realisation of accumulated translation effects

 

 

 

52

 

482

 

29

 

 

 

 

 

 

 

 

 

 

 

Net loss on disposal

 

 

 

(1 109

)

(828

)

(211

)

 

 

 

 

 

 

 

 

 

 

Consideration received comprising

 

 

 

 

 

 

 

 

 

Performance Chemicals — Heat Transfer Fuels (HTF) business

 

 

 

271

 

 

 

Base Chemicals — Investment in Petronas Chemicals LDPE Sdn Bhd and Petronas Chemicals Olefins Sdn Bhd

 

 

 

 

1 918

 

 

Energy — Property and mineral rights in the US (Lake de Smet)

 

 

 

 

215

 

 

Energy — Sale of Canada land

 

 

 

 

 

389

 

Other

 

 

 

296

 

183

 

399

 

 

 

 

 

 

 

 

 

 

 

Consideration received

 

 

 

567

 

2 316

 

788

 

 

 

 

 

 

 

 

 

 

 

 

Significant disposals and scrappings in 2019

 

Performance Chemicals — Heat Transfer Fuels (HTF) business

 

In 2019, we disposed of our HTF business with the producing assets located within the Marl facility in Germany.

 

Lake Charles Chemicals Project

 

In 2019, we scrapped R682 million (US$48 million) of cost incurred on the LCCP, mainly relating to rework required. Refer note 9.

 

Significant disposals in prior periods

 

Base Chemicals — Investment in Petronas Chemicals LDPE Sdn Bhd and Petronas Chemicals Olefins Sdn Bhd

 

Our divestment from Petronas Chemicals LDPE Sdn Bhd and Petronas Chemicals Olefins Sdn Bhd was concluded on 14 March 2018, resulting in a profit on disposal of R864 million, including the reclassification of the Foreign Currency Translation Reserve of R494 million.

 

Energy — US Gas-To-Liquids (GTL) Scrapping

 

We have scrapped the US GTL Project amounting to R1,1 billion (US$83 million) during the 2018 financial year.

 

Energy — Sale of Canada land

 

In 2017, we disposed of a portion of our land in Canada with a carrying value of R354 million (CAD35 million) for proceeds of R389 million (CAD38 million).